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Guyana Goldfields announced Q2 operational and financial results

Mining News - Published on Wed, 01 Aug 2018

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Guyana Goldfields Inc announced that its 2018 second quarter operational and financial results. All amounts are expressed in US dollars unless otherwise stated.

Q2 2018 Results Summary

Gold sales of 31,700 ounces at a total cash cost (before royalty)¹ of CAD 864 per ounce of gold sold. Cost of sales (including production costs, royalty and depreciation) was CAD 1,137 per ounce while all-in sustaining costs¹ were CAD 1,186 per ounce.

Gold production was below planned levels primarily due to slower than anticipated ramp-up in mining rates, which limited access to higher-grade ore during the quarter.

STRACON SA, a leading world class contract miner, commenced open pit waste stripping operations at the end of the quarter.

Mill throughput continued at record levels averaging 7,100 tonnes per day for the quarter, while maintaining recoveries of 91.4% (92.6% for June 2018).

The second phase of the mill expansion progressed in line with schedule with engineering approximately 90% complete and construction approximately 20% complete.

The Company has initiated the bidding process for the underground development contract with initial development targeted to commence in the fourth quarter of 2018. The initial underground mining fleet, owned by the Company, began mobilization to Guyana in July 2018.

Revised 2018 annual production and cost guidance to 175,000-185,000 ounces of gold produced at cost of sales of CAD 905 - CAD 955 per ounce, all-in sustaining cost¹ of CAD 945 - CAD 995 per ounce, and cash cost (before royalty)¹ of CAD 535 - CAD 585 per ounce.

Mr Scott A Caldwell, President & CEO stated that "Despite a disappointing quarter from both a production and cost perspective, we remain confident that the second quarter was a result of short-term operational setbacks and remain comfortable with longer term forecasts. With the equipment and contractor now on site and fully mobilized, our mining rate has already shown an improvement in July with a peak mining rate of approximately 63,000 tpd. For the month of July, gold production is estimated to be 14,000 ounces which exceeds the monthly forecast. The mill processed approximately 5,850 tpd of ore at an average head grade of 2.45 grams per tonne gold with gold recoveries averaging 94.8% while undergoing a 48-hour planned mill downtime and required maintenance on the primary crusher. With production always scheduled to be heavily back-end weighted for the year, we remain confident we will meet revised guidance and conclude the year with a strong finish."

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Posted By : Rabi Wangkhem on Wed, 01 Aug 2018
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